Pendle Finance Pauses Contracts After $27-$28 Million Penpie Exploit

Sep 3, 2024, 08:15 PM

Pendle Finance has confirmed that funds on its platform remain secure despite a security compromise in Penpie, an independent protocol built on top of Pendle. Penpie was exploited, resulting in a loss exceeding $16 million, including $7,879,029.18 in wstETH, $2,517,458.57 in sUSDe, $3,409,021.04 in agETH, and $2,226,244.80 in rswETH. The total amount drained is reported to be between $27 million and $28 million. The root cause of the exploit was identified as the introduction of an 'evil market' used to inflate values. As a precaution, Pendle has temporarily paused all smart contracts. Forta Network detected the incoming attack 40 minutes before the exploitation.